Is Dar Credit & Cap overvalued or undervalued?

As of 20 October 2025, the valuation grade for Dar Credit & Cap has moved from attractive to very attractive, indicating a strong improvement in its perceived value. The company is currently assessed as undervalued, supported by a PE ratio of 10.94, an EV to EBIT of 5.98, and a Price to Book Value of 1.05. These ratios suggest that the company is trading at a significant discount compared to its earnings and asset value.
In comparison to its peers, Dar Credit & Cap's valuation stands out favorably against Bajaj Finance, which has a PE ratio of 38.6 and an EV to EBITDA of 20.38, categorizing it as very expensive. Additionally, Life Insurance, another peer, has a PE ratio of 11.57 and an EV to EBITDA of 9.01, marking it as very attractive but still higher than Dar Credit & Cap. Notably, the company's recent stock performance has outpaced the Sensex over the past week, with a return of 4.25% compared to the Sensex's 2.44%, reinforcing the narrative of its undervaluation.